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Mangala’s Economics

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I found Karma inexplicable that such an effective Politician was not only taken away prematurely, but we were also denied the right to pay our respects as well.

In recent times, as Foreign Minister he ensured that our International relations were at their best ever.

His period as Finance Minister saw us register with long overdue financial discipline, two consecutive years of primary revenue surpluses in 2017 and 18, for the first time after over fifty years .

In a brief stint as Sports Minister he inspired Vijay Malalasekera’s Interim Committee to such an extent that we recorded our most successful years in International Cricket, with Integrity unquestioned !

Above all he was a very decent, humble, honest and civilised human being and was blessed in consequence with a Midas touch as his tenures will confirm.

We can all stand proudly and say “Here indeed was a true Statesman”

So Let us console ourselves that fate took him prematurely, to enable an early rebirth through his good Karma, and a path thereafter in Politics that will see him as the Head of State of a New Sri Lanka within forty years !

A prosperous era when educated Parliamentarians will adorn that revered Institution, with Country,, ALL its people and self in that order as their priorities and a Parliament that will conduct its affairs with dignity making its people truly proud

“Mangala” deserves that posthumous reward.

In the Interim Dear Sir, Rest in Peace.

A Grateful Citizen

 

by Deshal de Mel

When Mangala Samaraweera took over the Finance Ministry portfolio in May 2017 Sri Lanka was preparing to face some of its most challenging years in macroeconomic management. 2018 was the year that the government had to make its highest ever domestic debt repayments (LKR 922 billion in capital repayments of domestic debt. For context, in 2020 the domestic debt capital repayment was LKR 456 billion). In 2019 Sri Lanka had to make its highest ever foreign debt repayments (LKR 575 billion foreign capital repayments in 2019. In 2018 the foreign capital repayment was LKR 315 billion and in 2020 it was LKR 505 billion).

In addition to managing an economy where annual debt service payments (LKR 2,022 billion in 2019) were higher than government revenue (LKR 1,891 billion in 2019), in mid-2017 the country was in the midst of its worst drought in 40 years. Agricultural incomes had been decimated and the economy was also hurting from devastating floods in other parts of the country. The fragile coalition between President Maithripala Sirisena’s SLFP and Prime Minister Ranil Wickremesinghe’s UNF was also beginning to show the first signs of cracks as a two year honeymoon period was over. Amidst these challenges Mangala’s time was largely focused on firefighting these critical issues. That did not stop him from taking on some of the most important macroeconomic reforms during his two year stint as Minister of Finance.

Addressing Sri Lanka’s Fiscal Weakness

1996 was the year that Sri Lanka won the cricket world cup but it was also the last year that Sri Lanka had a government revenue to GDP ratio of over 20% (it was 20.1%that year and was consistently above 20% over many years prior to that). Since then revenue had declined dramatically, reaching a nadir of 11.6% in 2014. This was amongst the lowest government revenue performances in the world. Sri Lanka’s recent public expenditure ranging between 17% and 20% of GDP was not high by global standards. As of 2020 Sri Lanka’s government expenditure comprised largely non-discretionary spending including salaries and wages (6% of GDP), interest (6% of GDP), welfare and transfers (4% of GDP). Therefore there is very little room to meaningfully reduce expenditure in a practical manner.

The main causative factor behind Sri Lanka’s consistently high budget deficits was its weak revenue base. Sri Lanka also has an extremely regressive tax structure. As at 2017 approximately 82% of tax revenue was collected as taxes on goods and services and 18% as taxes on income and other direct taxes. Typically taxes on goods and services (indirect taxes) fall disproportionately on the poor. A family would pay the same tax on milk powder regardless of whether their household income is Rs. 50,000 or Rs. 500,000. This was how over 80% of Sri Lanka’s taxes have been collected. This reliance on taxes on goods and services has also contributed to driving up the cost of living as the tax component of prices continues to increase.

Mangala’s simple principle for taxation policy was that the government should wherever possible reduce upfront taxes and costs that disincentivize the commencement or establishment of business. However, once a business is established and profitable, it should pay its fair share in income taxes. This was the opposite to the reality at the time — Sri Lanka’s taxes had hitherto been front loaded into indirect taxes such as cess, PAL, NBT, and VAT — whereas income taxes are low and corporates enjoy a range of income tax holidays. As a result there is typically a high cost of entry into industry and limited competition among established players.

Taxes on incomes have been low for several reasons including open-ended tax holidays, weak collections reliant on self-declaration, and other leakages. The Inland Revenue Act of 2017 was drafted in order to address as many of these issues as possible.

In general the new legislation intended to shift to a rule based tax structure, moving away from discretionary policy which leaves room for leakages and graft. The IRA had important positive impacts on tax collection. Even though the legislation came into effect in April 2018, the full impact of the legislation would only be seen in November 2019 when the 2019/20 filing is completed. The results were impressive. There was a 44% growth in income tax collection in 2019 in spite of major shocks to the economy, tax payers registered with the Inland Revenue Department in 2018 was 986,684 and by 2019 it had increased to 1,505,552. Most importantly, in 2019 the ratio of direct taxes to indirect taxes shifted to 75% to 25% from 83% to 17% in the previous year. Even though marginal, this was an improvement in Sri Lanka’s highly regressive tax structure.

Primary Surpluses

One of Mangala’s key fiscal objectives at MoF was to achieve a primary surplus in the budget. Since independence, Sri Lanka had achieved a primary surplus only in 1954, 1955, and (marginally) in 1992. A primary surplus in the budget occurs when revenue exceeds expenditure minus interest cost. It is the measure of fiscal management that is truly within the control of the Minister of Finance since the past interest cost is payment for past sins. When a primary surplus is achieved it means the government’s revenue exceeds its non-interest expenditure. A primary deficit means the government has to borrow even to finance interest which is undesirable from a debt sustainability perspective. In 2017 Sri Lanka had a primary surplus of Rs.2 billion and in 2018 Rs. 91 billion (0.6% of GDP).

2017 (5.5% of GDP) and 2018 (5.3% of GDP) also saw two of the lowest budget deficits in Sri Lanka’s recent past. In 2016 as well Sri Lanka limited its budget deficit to 5.3% and in 2013 the deficit was 5.4%. However prior to that the only time the budget deficit dipped below 5.3% was in 1977 (4.5% of GDP).

A critique of this achievement is that even though the government had primary surpluses in 2017 and 2018, and the overall debt to GDP decreased in 2017 (from 79% to 78% of GDP), debt to GDP increased to 84.2% in 2018. The reason behind the increase in debt to GDP in 2018 was because of the depreciation of the currency that year due to the global taper tantrum early in the year as the Federal Reserve raised interest rates and the constitutional crisis later that year. When currency weakens, the rupee value of external debt increases, causing the debt to GDP ratio to increase, in spite of the gains made in real fiscal management, which is what can be controlled by the Minister of Finance.

There is also a perception that the decline in GDP growth rates was due to enhanced government revenue measures. However, quarterly GDP growth from Q1 2015 to Q3 2018 averaged 4.3%. This was keeping in line with the average growth levels of 2013 (3.5%) and 2014 (5%). Just as the economy was recovering from the droughts of 2017, this momentum was lost due to the constitutional coup in October 2018 which dragged down Q4 2018 growth to 2.1%. The resulting capital flight and forex reserve sales to defend the rupee resulted in negative market liquidity and higher interest rates that carried on well into 2019, compounded by the Easter Sunday attacks, dragging down 2019 growth as well.

Fuel Price Reform

In early 2018 the hopes of shifting to a market based fuel price formula were fading. This was potentially a major reform given the significant fiscal burden created over the years due to mis-pricing of petrol and diesel and weak balance sheet management by CPC. These factors combined to result in CPC running up debts over LKR 300 billion, mostly placed with the state banks, creating a high-risk fiscal combination. Anchoring retail fuel prices to the global market price (with adjustments for taxes, distribution costs, storage costs, finance costs, and profit margin) would help eliminate additions to the existing fiscal burden of CPC. When global prices rise, the domestic fuel price would rise, when global prices fall, the domestic price would fall. Even if the government chose not to increase retail prices in line with global price shifts, a transparent and publicly available formula would create more visibility on the fiscal costs of such a policy.

Like all challenging reforms, ideally the fuel price formula should have been introduced early in the political cycle, market prices were also trending upwards by 2018. In May 2018 the formula commenced implementation. On the 10th of every month the retail price of fuel will be adjusted to reflect the latest global fuel price (Singapore Platts was the anchor used). The timing could not have been worse, and communication could have been a lot better. Global fuel prices had started sky-rocketing from mid-June and peaked at over US$ 80 per barrel in October from the US$ 50 range leading up to May. Naturally the public associated the fuel price formula with rising prices at the pump. Had the formula been implemented a year prior, the public would have seen prices decline and stabilize prior to increasing. But alas, this was not to be, and the formula was scrapped by the new administration.

Trade Liberalisation

As at end 2019 Sri Lanka’s rank in Trade Openness was 140th out of 141 in the Global Competitiveness Index. In spite of being the first country in South Asia to liberalise in 1977, Sri Lanka’s trade protection levels have increased over the last couple of decades. In the 5 years from 2014 to 2018, the average percentage of government revenue collected at the border was around 49%.

The increased layers of taxes on imports results in three key impediments;

i) These import taxes are a significant burden on consumers. The effective import tax rate of several basic consumption products from milk powder to biscuits goes up to 100%.

ii) Import taxes erode competitiveness as domestic firms receive significant protection from global competition leading to less incentive for innovation and dynamism and thus hinders long term productivity improvements — the true driver of economic growth.

iii) Several intermediate imports have high import taxes — including numerous construction materials. This drives up costs for all industries, eroding competitiveness of almost all Sri Lankan enterprise. It also makes Sri Lanka less attractive a destination for FDI.

In Sri Lanka a lot of border taxes take the form of paratariffs. The standard import duty is customs import duty (CID), however since CID is eliminated in Free Trade Agreements (FTAs) with India and Pakistan, successive Sri Lankan governments have added in layers of paratariffs such as cess and the Ports and Aviation Levy (PAL).

In the 2017 November budget it was decided to commence the elimination of most of these paratariffs. Mangala championed this initiative since he recognized the potential positive implications it would have for the economy in the long term. Some of the treasury officials were less enthusiastic, because there would naturally be a short term revenue loss as a result of removing these tariffs and also because it would result in severe lobbying by protected industries, seeking to retain their walls of protection.

Whilst some in the ministry wanted to see tariffs eliminated almost entirely in a big bang reform move, it was necessary to allow time for domestic industry to adjust to this significant change. It was eventually decided that the best approach would be a five year phase out of most paratariffs. This would make the revenue impact easier to absorb — revenue from PAL and cess amounted to around 1% of GDP. To start with though the 2017 November budget would eliminate paratariffs on 1,200 or so of the least sensitive tariff lines. The impact would not be material, but Mangala felt it would be a robust signal — and also give additional time for industry to make adjustments to the envisaged operating environment. In the March 2019 budget the next phase of para-tariffs was eliminated, and a Trade Adjustment Programme was introduced to provide budgetary support for domestic sector entities that face adverse adjustment costs due to exposure to greater global competition.

Welfare Reform

Another important initiative of the Ministry of Finance under Mangala Samaraweera was the effort to streamline welfare payments. One of the first things Mangala asked me was how we can move away from a system of price controls on essential items to provide relief to the public. He understood that price controls are not sustainable since they are poorly targeted, they tend to result in shortages and erosion of quality when market prices exceed the administered price. And of course they are subject to constant abuse. He was very keen that we look at introducing a system where relief is provided to the needy through cash transfers — his favourite example was Bolsa Familia, Brazil’s cash transfer programme.

Of course this required a robust system of identification and targeting of those who are deserving of such support. This would apply not just to those who were of lower income levels, but also those with disabilities, the elderly and infirm, and those vulnerable to and victims of natural disasters. Sri Lanka’s existing system of welfare distribution, Samurdhi, was woefully inadequate in terms of targeting. Samurdhi had vast numbers of undeserving recipients who benefitted from the scheme and more worryingly, large numbers of deserving citizens who were excluded from the scheme. The World Bank provided technical support in designing such a targeting mechanism and after a lot of work the new targeting criteria was finally gazetted in June 2019. The mechanism consisted of objective, verifiable criteria including education levels, housing conditions, income, electricity consumption, assets, and illnesses. If fully implemented this mechanism of targeting, combined with the use of digital payment systems, would have enabled a transparent and efficient scheme of providing welfare to those who most deserved it, without resorting to the economic inefficiencies of indiscriminate price controls. Unfortunately this initiative too did not make it beyond the election cycle.

Monetary Policy Legislation

Another potentially game changing reform was the new Monetary Law Act. This legislation was championed by the Central Bank under Indrajit Coomaraswamy, and Mangala supported it to the hilt, even at the tail end of the political cycle. The MLA was designed to provide greater independence to the Central Bank, coupled with accountability measures for the Monetary Board. It would create disciplines around deficit financing (money printing) and establish the legal framework for inflation targeting. These measures would have imposed limitations on some of the most problematic interactions between the monetary and fiscal authorities, that have over the years led to Sri Lanka’s fiscal profligacy, deficit financing, all resulting in ballooning debt and monetary instability. Mangala was not a subject expert, but perhaps his best quality was to listen to the experts and formulate his judgment based on the technical advice that he received. The new Monetary Law Act also did not see the light of day.

2018 Constitutional Coup

It had been a very heavy few weeks in the lead up to the 2019 budget to be presented in early November 2018. The 26th of October was a Friday. The Active Liability Management Bill, a landmark piece of legislation that would allow Sri Lanka to buy back or otherwise manage its lumpy liabilities to smoothen out its repayment obligations, was passed in parliament in the afternoon. This piece of legislation had faced stiff opposition by President Sirisena. We had finished the final draft of the budget speech and had sent it for the final technical annotations. The end of a long week and several long months. As I drove out of the treasury building at around six pm I noticed barricades being hurriedly stacked up near the Presidential Secretariat. I didn’t pay much attention and carried on to catch up with some friends.

About forty five minutes in everyone was getting messages, stating that Mr. Mahinda Rajapaksa is being sworn in as Prime Minister at the Presidential Secretariat. The initial reaction was disbelief since that act would in itself be unconstitutional. I made a couple of phone calls and it was clear something extraordinary was going on so I rushed back to the treasury. Most of the staff was gone by this time but the Minister and a couple of the private staff were still around. Nobody could quite believe what was going on. Having thought things through Mangala wanted to send out a tweet at 8.30pm saying “The appointment of @PresRajapaksa as the Prime Minister is unconstitutional and illegal. This is an anti-democratic coup #LKA.” I asked him if he’s sure he wants to use the word coup. It was a strong word and would have important ramifications. He thought for a few seconds and replied in the affirmative, saying that a coup is exactly what is going on.

The economy took a beating over the subsequent two months. Foreign investors took flight and exited their positions in GoSL rupee denominated treasury securities. Rs. 75 billion worth of foreign investments in government securities was sold in just 2 months, creating massive pressure on the currency, causing the rupee to crash from 172/US$ to Rs. 182/US$ between October and December 2018. The currency was already weak due to the taper tantrum in the early part of the year which hammered all emerging economies. When capital flows started reversing in Q4 and other emerging economies saw a recovery, Sri Lanka was in the midst of the coup and associated capital flight.

During this time the government sold US$ 1 billion worth of reserves in just 1 month as reserves declined from US$ 7.9 billion to US$ 6.9 billion. These were valuable reserves the government had been building up in preparation for the substantial external debt repayments in 2019. More importantly Sri Lanka’s credit rating was downgraded by all three rating agencies in November 2018. On the 30th of November 2018 the yield on the January 2019 ISB had reached 10.7% from 5.6% on 26th October. This meant that Sri Lanka was effectively locked out of global capital markets on the cusp of having to settle over US$ 5.3 billion in debt repayments in 2019, including a US$ 500 million ISB in early January 2019. It was heart breaking for Mangala watching this unfold from the sidelines given all the efforts that he had and the team had taken to keep the economy stable to meet the 2019 debt repayments amidst the global bond market volatility in 2018.

As the economy deteriorated into December it became clear that the adverse impacts of the coup would be long lasting. Due to the sales of US$ 1 billion worth of reserves by the Central Bank, liquidity in the domestic rupee market also reduced dramatically. The market was short LKR 100 billion in the overnight money markets and this pushed up domestic interest rates dramatically as well. Prior to the coup, the 1 year treasury bill was in single digits at 9.5% as at end September 2018, having been at 10.5% when Mangala became Finance Minister. During the coup interest rates shot up to 11.25% by mid-December. The market was LKR 100 billion liquid short till at least April 2019, keeping interest rates elevated and hurting economic growth significantly in 2019. The high interest cost added to Sri Lanka’s debt concerns as well by driving up the cost of domestic debt.

Managing External Debt in 2019

When the Supreme Court verdict came through in 13th December and Mangala returned as Finance Minister, there was a lot of work to be done. Firstly there was no year end budget to authorize payments for 2019, and Sri Lanka had lost access to global capital markets to finance the country’s highest foreign debt repayments in 2019. A quick vote on account was passed by end December, and the next step was to somehow regain access to global capital markets to make sure we can refinance debt repayments. It was unfortunately too late for the January 2019 bond which we had to settle out of the already diminished reserves. Soon afterwards Mangala led a team to Washington to meet with the IMF and re-instate and re-negotiate Sri Lanka’s programme. In spite of Mangala losing his suitcase and D.C. being having a snow day as soon as we arrived, the team met with Christine Lagarde and the technical team led by Manuela Goretti, and after some tough negotiations we were able to set the programme back on track with some important concessions. The external goodwill towards Sri Lanka was palpable, and there was nobody better than Mangala to leverage this to the country’s best advantage.

Over the next two months Mangala had to put together a delayed budget for 2019. This was a particularly tough budget since it was an election year and there were expectations of additional concessions, but at the same time it was critical that the fiscal position would inspire the confidence of global capital markets in order to regain access to external financing. Mangala’s last budget was able to meet both criteria. The March 2019 budget included Programmes such as Gampereliya, a rural infrastructure programme which was seen as a means of providing targeted fiscal impetus to improve cash circulation at the rural level, whilst investing in productive infrastructure leveraging on rural value chains. The enhanced Enterprise Sri Lanka programme was a means of reducing cost of capital, one of the key impediments to SMEs in the country. This was a strategy to provide a targeted reduction in interest rates to productive investments without a general reduction in interest rates. A general reduction in interest rates at the time would have led to an acceleration of capital flight post-coup, and would have further de-stabilized an already volatile external sector. Mangala had some other wonderful ideas in that budget, including providing scholarships for the best performing Advanced Level students to study at any top global university that they qualify for admission.

The budget was also able to satisfy global markets and Sri Lanka regained access to global capital markets. Immediately as the budget was passed, the Central Bank led the process of raising the required International Sovereign Bonds (ISBs) to settle the upcoming debt payments in 2019. However, whilst settling the immediate debt, Mangala and Indrajit Coomaraswamy were also cognizant of the fact that leading into two election years (2019 presidential and 2020 parliamentary), Sri Lanka may face risks in retaining global capital market access to finance debt repayments in 2020 and 2021. Accordingly, Mangala and Indrajit made a conscious decision to raise an additional US$ 2.4 billion dollars worth of ISBs in mid-2019 to build up reserves to US$ 7.6 billion by end 2019 to tide over a volatile couple of years ahead. Whilst today many politicians criticize the previous government’s international sovereign bond strategy, it is the reserves built through the US$ 4.4 billion ISBs raised in 2019 that have been used to settle Sri Lanka’s external debts in 2020 and 2021. Sri Lanka would have already defaulted if not for Mangala and Indrajit’s decision in mid-2019.

True Patriot

There are of course many things that I’m sure Mangala wishes went differently. He wanted to update and upgrade legislation for Customs and Excise — to reduce subjectivity, discretion, and shift to a more rules based framework for both pieces of legislation. He wanted to do move faster on trade reform but the political economy of late stage reform made such intentions difficult to fulfil. He was also keen to invest more in education, health, and reconciliation. He wanted to bring in legislation to address microfinance and informal finance related household indebtedness. There was a lot more than could be done within an interrupted 2 year tenure.

I and many others will miss Mangala not so much for his achievements and efforts as Finance Minister. Nor for his work towards reconciliation from the Sudu Nelum movement to date, for his work in liberalization of the telecom sector in the late 1990s, for his work with the UDA in Colombo’s initial beautification. I will miss a human being of immense courage, who stood for what is right regardless of societal or political compulsions. A man of integrity, conviction, and humility. A patriot in the true sense of the word.

Deshal de Mel Economist based in Sri Lanka



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Features

‘Building Blocks’ of early childhood education: Some reflections 

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In infancy and childhood is laid the groundwork for an integrated personality in the making, in preparation for adaptation to the outside world. The malleability of the nervous system [neuroplasticity] due to its extensive growth during early childhood, considered to be the critical period for learning, offers the potential to bring about lifelong benefits in terms of social, emotional and intellectual development.

My goal in this brief article is to reflect on the essential elements [‘building blocks’] of education in early childhood which help to lay the foundation for positive outcomes in later life. It is intended to encourage conversation amongst the general readership of this important topic, especially the parents of young children, as learning begins at home.

Critical Period for learning

Early childhood usually covers the age range from infancy to about eight years of age, during which period most of the brain growth takes place. The prefrontal cortex of the brain responsible for higher cognitive functions [e. g. planning, decision making etc.] continues to mature into the mid-twenties. That isn’t to say that learning processes could not continue throughout life.

Current Community Attitudes towards Education

Let us first examine the current public attitudes towards education in general. Proficiency in reading, writing, math and science are regarded as the core academic literacies on which all other learning rests, and on which future success in life depends. The Arts and Humanities, a group of disciplines that study aspects of human society and culture, are placed lower in the hierarchy in the academic curriculum and are often considered supplementary. Their value in enhancing human ideals is often ignored. In a technologically advancing world we live in, the contribution of the study of the arts and humanities towards boosting the economy is brought into question.

The above attitude has created a highly competitive, exam driven, and hence stressful, academic environment for our children in their formative years. There are excessive demands placed upon them to achieve academically, exacerbated by parental pressure – overt or covert. Attendance at paid ‘tuition classes’, after hours, to supplement learning at school is considered essential to gain higher grades at exams, in order to be competitive in entering tertiary institutions and in enhancing career prospects. The love of learning is lost.

Many children find no time for reflection, or to read outside the curriculum to broaden their understanding about life. There is a perception in the community of a decline in literacy and sensibility in the young and their tendency to lean towards much less civilising forms of entertainment and communication, which is at the root of most of our social ills, compounded by the economic ills that currently plague us. Alarmingly, a recent survey by the College of Community Physicians of Sri Lanka has revealed that over 200 adolescents have committed suicide in 2024, which they, reportedly, attribute to their indulgence in social media. But at the heart of it is the breakdown of social order resulting in a lack of ‘meaning’ in life, as once postulated by the renowned French Sociologist, Emile Durkheim.

Family Milieu

The developing child requires the provision of certain environmental conditions, based on common principles, to complement the innate biological drive which we call instinct. Of vital importance is the family milieu, its stability and its ability to meet the child’s emotional needs. From an emotional point of view, the child needs to feel safe, and experience the contentment in the parent’s inter-relationship, in order to set the ground for learning. In addition, it helps for the parents to model the love of learning and of knowledge through communication in words and in actions.

In an ideal world, a child’s parents and teachers ought to be equally committed towards helping the child develop a love of learning. In some instances a teacher must shoulder most of the work – for instance, when parents are busy making a living or have had a limited education themselves.

Enrichment Strategies

Let us reflect on some of the enrichment strategies in early childhood education which would bring about a balance in the curriculum.

The Arts

“Engagement of children in the arts has the power to console, transform, welcome, and heal. It is what the world needs now” [Yo Yo Ma, Cellist]

The arts are commonly used as enrichment strategies in Early Childhood Education. They include music, dance, drama, and Visual and literary arts. The strengths developed through the arts during the early formative years have the potential to enhance other spheres of learning, and performance in later life. By eliciting emotions in the listener, the arts, as both Aristotle and Freud asserted, has the capacity to be therapeutic by being cathartic.

Music

Neuroscientists have shown that, due to the plasticity of the brain in young children, music training tended to enhance the auditory [hearing] pathways in the brain, and hence, the development of phonological awareness [responsiveness to contrasting sounds]. Phonological awareness is considered to be an important precursor to reading skill and the ability to rhyme. In addition, ‘Music is the language of emotions’, encouraging children to gain awareness of their own emotions in addition to making aesthetic judgements.

Drama

Research studies show that enacting stories in the classroom in comparison to dramatic performances on stage by children have several beneficial effects such as better understanding of the stories enacted and the appreciation of new stories. In addition, such classroom performances of stories enriched oral language development and reading skills, including an eagerness to read, and surprisingly, even writing skills.

Visual Arts

Engagement of children in visual art involves much more than learning the techniques of drawing and painting. Long periods of engagement in the craft provides a framework for enhancing thinking skills – to be more focussed and persistent in one’s work; to enhance the power of imagination; to generate a personal viewpoint or express a feeling state; and to encourage the child to reflect on and to make a critical judgement of their own work. Similarly, by entering into a conversation with the children after encouraging them to look closely at a piece of art, tended to heighten their observation skills. There is evidence that these habits of mind acquired from the engagement of children in visual arts could be ‘transferred’ to other areas of learning, and stand in good stead in employment in later life.

Reading

According to the British neuropsychologist, Andrew Ellis, the brain was never meant to read, in terms of human evolution: “There are no genes or biological structures specific to reading.” Reading had to be learned, requiring the integration and synchronisation of several systems of the brain acquiring a new neuronal circuitry for the purpose – perceptual, cognitive, phonemic, linguistic, emotional and motor. Reading, as it develops, aided by an environment that lures the child to read would lead to further enhancement of the cognitive capacity of the brain – an important dynamic in childhood education.

The more young children, are read to, and are engaged in conversation that flows on from stories read [‘conversational reading’], the more they begin to love books, increase their vocabulary and their knowledge of grammar, and appreciate the sounds that words generate – evidently, best predictors of later reading interest and critical thinking. Conversational reading is a technique where the parent or educator engages with the child in a conversation while reading a book, asking open-ended questions to encourage active participation and deeper comprehension, eg. entering into a dialogue about the story while reading it together.

In addition, reading enhances the child’s self-worth and personal identity [emotional experience of reading].

What better way for children to be introduced to the world that they are to be part of than to be immersed in a story that is all about beings and the environment that surrounds them? What better way for children to learn about ideas and speech patterns, how people react and interact, and how dialogue reveals more about a person than what they say, and about interpersonal relationships. Sadly, children with reading disability have a greater tendency to develop emotional and conduct disorders needing remedial support.

Children’s Literature

It is claimed that appropriate works of children’s literature, read or enacted, help the developing children build empathy and compassion – desirable human ideals that can persist through to adult life – by placing themselves in the shoes of fictional characters and simulating what the characters in the narrative are experiencing. One could argue that the same could be achieved in real life by interacting with others but does not have the advantage of having access to the inner lives of individuals as depicted in well-crafted fictional works.

There is no better way to convey moral instruction than by vicarious learning through reading. As the legendary Russian author, Leo Tolstoy, propounded in his popular monograph, ‘What Is Art?’, the value in a piece of literary art is to be judged by its ability to make the reader morally enlightened.

There is no better way for children, while gaining the aesthetic rewards of a narrative, to enhance their thinking and reasoning, generate creativity, and introduce them to a life rich in meaning.

“There are perhaps no days of our childhood we lived fully as those we spent with a favourite book…they have engraved in us so sweet a memory, so much more precious to our present judgement than what we read then with such love…”

[‘On Reading’, by Marcel Proust 1871-1922, French novelist and literary critic]

Children’s Poetry

We are endowed with a rich poetic tradition that extends as far back as the Sinhala language and its precursors. Over the centuries the lyrical content mirrored the changing socio-cultural and political landscape of our country. During the pre-independence era, there was a revival of lyrical output from men of vision aimed at enhancing the creativity and sensibility of the young, to prepare them for the challenges of a free nation, and enhance their sensibility. Foremost among this group of poets were: ‘Tibetan’ [Sikkimese] monk, Ven. S. Mahinda, Ananda Rajakaruna and Munidasa Kumaratunga. Their poems that lured the children most were about nature. Simple and well crafted, they were designed to draw children to the lap of Mother Nature, to admire her beauty and to instil in them a lasting imagery and a feeling of tranquillity. Ananda Rajakaruna’s ‘Handa’ [the moon], ‘Tharaka’ [Stars], ‘Kurullo’ [birds], ‘Ganga’ [The river]; Rev. S. Mahinda’s ‘Samanalaya’ [The Butterfly], ‘Rathriya’ [The Night]; Munidasa Kumaratunga’s ‘Morning’, which captures the breaking dawn, ‘Ha Ha Hari Hawa’ [About the Hare], are amongst the most popular. They are best recited in the original language as any attempt at translation would seriously damage their musical and lyrical qualities.

Narrative Art

Martin Wickremasinghe [1890-1976] was ahead of his time in recognising the importance of children’s literature and its positive impact on their psychosocial and intellectual development. He argued a case for establishing a tradition of children’s literature anchored in our heritage, and in keeping with the degree of maturity of the child; and that the work be presented in a simple and pleasurable form mixed with moral instruction in the right measure. He observed that a nation without children’s literature rooted in its heritage may face intellectual and moral decline. He asserted that children’s books should only be written by those who understood the developing mind.

In his publication, ‘Apey Lama Sahithyaya’ [Our Children’s Literature] Martin Wickremasinghe acknowledges past contributions to our children’s literature by prominent writers. Piyadasa Sirisena, Munidasa Kumaratunga, G. H. Perera and others transformed folk tales into prose and poetry for children. V, D, de Lanarolle was a pioneer in writing children’s stories for supplementary reading, naming his series, ‘Vinoda Katha’ [Pleasurable Stories]. Edwin Ranawaka translated children’s stories, from English to Sinhala, to suit the local readership. Martin Wickremasinghe’s own Madol Duwa, and G. B. Senanayake’s Ranarala and Surangana Katha were significant contributions to our children’s literature. Munidasa Kumaratunga took an innovative approach in producing ‘Hath Pana’ [Seven Lives], ‘Heen Seraya’ {Slow Pace], ‘Magul Kema’ [Wedding Feast] and ‘Haawage Waga’ [The Hare’s Tale] which gained immense popularity.

Despite the above, Martin Wickremasinghe argued that we have been slow in developing children’s literature of our own, although such a literary genre has been established in the west, for example, the Aesop’s Fables and the Fairy Tales of Hans Christian Anderson.

Aesop’s Fables, thought to have been narrated by a slave who lived in ancient Greece [whose identity remains obscure in history], have survived the test of time as a conveyor of values and virtues for children to reflect on, and to generate a conversation facilitated by their teacher. The allegorical tales, much admired by children [and adults!], are aimed at both entertaining and imparting moral wisdom with the use of animal characters having human attributes [Anthropomorphism] and their social interactions. The brief and lucidly told tales – 200 or more – laden with worldly wisdom, have the potential to generate a literate population, when introduced during early childhood. Let me remind you of few popular fables with their core messages: ‘The Hare and the Tortoise’ [Slow and steady wins the race]; ‘The Lion and the Mouse’ [No act of kindness, no matter how small, is ever wasted]; ‘The Cock and the Jewel’ [The value of an object lies in the eyes of the beholder]

The Fairy [fantasy] Tales of Hans Christian Andersen [1805-1875] continues to feed the imagination of growing-up children through his portrayal of unique and unforgettable characters – witches, beasts and fairies – with features of human life. The tales of the Danish master story-teller, translated into many languages, have gained universal appeal amongst children as he weaves his vastly entertaining stories such as Thumbelina, The Tin Soldier, and The Emperor’s New Clothes etc. based on fantasies with a lesson to convey. In addition to entertainment and instruction, his tales portray universal human conditions such as joy, sorrow, fear, pride, abandonment, resoluteness etc. and allow children to recognise their own feeling states, which the psychoanalysts believe is therapeutic.

The above shows that the east and west can meet on the ground of universal values, exemplified by the arts, and that human reason – the capacity of humans to think, understand and form judgement – is the true guide in life.

In sum, although reading, writing and mathematics in early childhood education are considered the core academic literacies on which other learning rests, and on which success in life depends, current research indicates that arts education through the development of certain habits of the mind could enhance academic achievement. It is thought that high arts involvement in children tend to augment their cognitive functions [eg. attention and concentration], thinking and imaginative skills, organisational skills, reflection and evaluation, which could be ‘transferred’ to other domains of the school curriculum, including science. This is in addition to the role the arts could play in enhancing interpersonal skill and emotional well-being, in conveying moral instruction, and in the exercise of empathy. As such, one could argue a case for a well-rounded system of education incorporating the arts to be introduced during early childhood.

I apologise for my ignorance in the Arts and Literature in Tamil.

Desirable Qualities of Educators

The above ideal could only be achieved through greater investment in training competent teachers in early childhood education. What ought to be the desirable qualities of an early childhood educator? It is my view that the teacher should a] have a good understanding of childhood development – physical, psychological and intellectual – and have the capacity to appreciate individual differences; b] possess ‘age-related’ conversational skills with the children – to listen and to allow free expression, with the aim of encouraging self-exploration of their work; c] have the ability to enhance children’s self-esteem while being able to set limits when necessary, within a framework of caring; d] understand the need to liaise with the parents; and, most of all, e] have a passion for educating children.

Educational Reform

Our nation is in need of a national policy on early childhood education as part of an overall plan on educational reform. It is expected that the powers that be will address a range of issues in planning of services: the inequity in access to Early Childhood Education; integration of early childhood education with the mainstream educational facilities; quality assurance and monitoring; and most importantly, greater investment in training of competent instructors in early childhood education, and creating opportunities for the teachers to be engaged in continuing education and peer review. It is hoped that the government will be able to create a framework for laying the groundwork for restructuring Early Childhood Education – a worthy cause in nation building.

Source Material

Winner, E. [2019]. How Art Works – A psychological Exploration. Oxford University Press.

Willingham, Daniel T. [2015]. Raising Kids Who Read. Jossey Bass – A Wiley Brand.

Wickremasinghe, Martin. [Second Edition 2015]. Apey Lama Sahithya [Our Children’s Literature]. Sirasa Publishers and Distributors.

Hans Christian Andersen. Andersen’s Fairy Tales. Wilco Publication 2020 Edition.

Aesop’s Fables. Wilco Publication 2020 Edition

[The writer is a retired Consultant Psychiatrist with a background of training in Adult General Psychiatry with accredited training in Child and Adolescent Psychiatry, in the UK. He is an alumnus of Thurstan College, Colombo, and the Faculty of Medicine, University of Peradeniya. Resident in Perth, Western Australia, he is a former Examiner to The Royal Australian and New Zealand College of Psychiatrists, and the recipient of the 2023 Meritorious Award of the RANZCP [WA Branch]]

by Dr. Siri Galhenage ✍️
sirigalhenage@gmail.com

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Where stone, memory and belief converge: Thantirimale’s long story of civilisation

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Nimal, Ayoma and Sampath

At the northern boundry of Anuradhapura, where the Malwathu Oya curves through scrubland and forest and the wilderness of Wilpattu National Park presses close, the vast rock outcrop of Tantirimale rises quietly from the earth.

Spread across nearly 200 acres within the Mahawilachchiya Divisional Secretariat Division, this ancient monastic complex is more than a place of worship. It is a layered archive of Sri Lanka’s deep past — a place where prehistoric life, early Buddhist devotion, royal legend and later artistic traditions coexist within the same stone landscape.

“Thantirimale is not a site that belongs to a single period,” says Dr. Nimal D. Rathnayake, one of the principal investigators who has been studying the area together with Ayoma Rathnayake and Eranga Sampath Bandara. “What we see here is continuity — people adapting to the same environment across thousands of years, leaving behind traces of belief, survival and creativity.”

Traditionally, the Thantirimale temple is believed to date back to the third century BC, placing it among the earliest Buddhist establishments in Sri Lanka.

The Samadi Buddha Statue

The Reclining Buddha Statue

The Mahavansa records that civilisation in this region developed following the arrival of Prince Vijaya, whose ministers were tasked with establishing settlements across the island. One such settlement, Upatissagama, founded by the minister Upatissa, is often identified as the ancient precursor to present-day Thantirimale.

Yet archaeology offers a deeper and more complex story. Excavations conducted in and around the rock shelters reveal that indigenous tribal communities lived at Thantirimale long before the rise of the Anuradhapura kingdom. These early inhabitants — likely ancestors of today’s Veddas — used the caves as dwellings, ritual spaces and meeting points thousands of years before organised monastic life took root.

“The rock shelters were not incidental,” Dr. Rathnayake explains. “They were deliberately chosen spaces — elevated, protected and close to water sources. This landscape offered everything prehistoric communities needed to survive.”

Over centuries, Thantirimale accumulated not only material remains, but also names and legends that reflect shifting political and cultural realities.

During the reign of King Devanampiyatissa, the area was known as Thivakkam Bamunugama, suggesting a Brahmin presence and ritual importance. Another strand of tradition links Thantirimale to Prince Saliya and Ashokamala, the royal lovers exiled for defying caste conventions.

Folklore holds that they lived in this region for a time, until King Dutugemunu eventually pardoned them and presented a golden butterfly-shaped necklace — the Tantiri Malaya — believed to have given the site its present name. Linguistic traditions further suggest an evolution from “Thangaathirumalai”, pointing to South Indian cultural influences.

Tantirimale also occupies a revered place in Buddhist memory. According to tradition, Sanghamitta Maha Theri rested here for a night while transporting the sacred sapling of the Jaya Sri Maha Bodhi from Jambukola to Anuradhapura. That brief pause transformed the rock into sacred ground, forever linking Tantirimale to one of the most powerful symbols of Sri Lankan Buddhism.

Among the most striking monuments at the site is the unfinished Samadhi Buddha statue, carved directly from a massive cube-shaped rock.

Standing about eight feet tall, the statue bears a remarkable resemblance to the celebrated Samadhi Buddha of the Polonnaruwa Gal Viharaya. Guardian deities flank the central figure, while behind it a dragon pearl is supported by two lions — a motif associated with protection, sovereignty and cosmic balance. Dwarf figures decorate the seat, adding layers of symbolic meaning and artistic refinement.

“What is extraordinary here is the ambition of the sculpture,” says Dr. Rathnayake. “This was clearly intended to be a monumental work.” Excavations around the statue have uncovered stone pillars and evidence of a protective roof, indicating that artisans worked under shelter as they shaped the figure.

The statue’s incomplete state is most plausibly explained by the foreign invasions and political instability that marked the later Anuradhapura period. Stylistic features suggest that the work continued into, or was influenced by, the Polonnaruwa period, underscoring Thantirimale’s enduring importance long after Anuradhapura’s decline.

Nearby lies another monumental expression of devotion — the reclining Buddha statue, measuring approximately 45 feet in length. Unlike the Samadhi statue, this figure has been detached from the living rock and is dated to the late Anuradhapura period. Its scale and proportions closely resemble Polonnaruwa sculpture, reinforcing the idea of a continuous artistic and religious tradition that transcended shifting capitals and dynasties.

Yet the most ancient and fragile heritage of Thantirimale is found not in its monumental statues, but in two adjacent caves within the monastic complex. Their walls still bear the fading traces of prehistoric rock paintings dating back nearly 4,000 years. First recorded by John Still in 1909, these paintings were later documented and analysed by scholars such as Somadeva.

The paintings include human figures, animals, geometric patterns and symbolic motifs, suggesting ritual practices, storytelling and shared cultural memory. “If Tantirimale functioned as a common meeting place for independent territorial groups,” Dr. Rathnayake observes, “then these images may represent a shared visual narrative — a way of communicating identity and belief beyond spoken language.”

One of the caves, previously known to contain both human and animal figures, has deteriorated significantly and now requires urgent conservation intervention. The second cave, however, offers a rare and intriguing glimpse into prehistoric ecological awareness.

Among the animal figures are two images believed to represent a Leatherback Sea Turtle and either a crocodile or land monitor, measuring 18 and 13 centimetres respectively. The turtle depiction is particularly striking for its anatomical accuracy — the ridges on the carapace are clearly visible, aligning closely with known herpetological characteristics.

“These details suggest close observation of nature,” says Dr. Rathnayake. Archaeological evidence supports this interpretation. According to earlier studies, sea turtles were transported to Anuradhapura as early as 800 BC. During the Gedige excavations in 1985, bones of the Olive Ridley sea turtle were discovered, possibly used for ornaments or utilitarian objects. Images of land monitors and crocodiles are common in dry-zone rock art, reflecting both ecological familiarity and subsistence practices, as Veddas are known to have consumed the flesh of land monitors.

Today, Thantirimale stands at a critical crossroads. Encroaching vegetation, weathering stone, fading pigments and increasing human pressure threaten a site that encapsulates millennia of human adaptation, belief and artistic expression. For Dr. Rathnayake and his team, the need for protection is urgent.

“Thantirimale is not just an archaeological site or a temple,” he says. “It is a living record of how humans have interacted with this landscape over thousands of years. Preserving it is not simply about protecting ruins — it is about safeguarding the long memory of this island.”

In the quiet of the rock shelters, where prehistoric hands once painted turtles, hunters and symbols of meaning, Thantirimale continues to whisper its story — a story written not in ink or inscription, but in stone, pigment and belief.

By Ifham Nizam ✍️

 

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Coaching legend Susantha calls time on storied career

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Susantha Fernando being awarded.

Veteran athletic coach Susantha Fernando called time on his illustrious career in the state service recently. Fernando, who began his career as a physical education teacher was the Assistant Director of Education (Sports and Physical Education- Central Province Sports Schools) at the time of his retirement last month.

‎Susantha was responsible for transforming the then little known A. Ratnayake Central, Walala, into an athletics powerhouse in the schools sports arena. His sheer commitment in nurturing the young athletes at Walala not only resulted in the sports school winning accolades at national level but also produced champions for Sri Lanka in the international arena.

‎These pictures are from the event to launch his autobiography Dekumkalu Kalunika and the felicitation ceremony organised by Tharanga Gunaratne, Director of Education at Wattegama Zone to felicitate him following his retirement.

‎Former Walala athletes, his fellow officials and a distinguished gathering including former Director of Education Sunil Jayaweera were gathered at the venue to felicitate him.

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